Alex Waislitz slams Money3 options plan

Billionaire Alex Waislitz has lashed out at plans to issue options to the board and management of Money3.

Thorney Opportunities chairman Alex Waislitz opposes the Money3 resolution.

Billionaire Alex Waislitz has lashed out at the board of car finance group Money3 over its proposed issue of more than five million options to the board and management, saying his Thorney Group will vote according to its “moral beliefs’’ in opposing the resolution at this week’s annual general meeting.

Money3 is seeking shareholder approval to issue 2.5 million options to chief executive Scott Baldwin and a further 2.6 million to the non-executive directors, including chairman Ray Malone, for “making special exertion contributions to the company, outside the usual role and responsibilities of a non-executive”, according to the notice of AGM sent to shareholders.

Most controversially, the options vest in three years but the strike price is $1.50 — below the current price of $1.70, which is up from 87c in early January.

Mr Waislitz, who is chairman of listed investment company Thorney Opportunities — a Money3 investor — believes the strike price should be more like $2 to provide an incentive for the management and board to perform.

“We cannot support the option resolutions as proposed. We have been a supporter of Money3 for a long time.

“We fully supported Ray Malone’s involvement as chairman, the new board and management changes and the company’s various financing and other initiatives,’’ Mr Waislitz told The Australian yesterday.

“We think the new board and management has been very successful in delivering value for all shareholders.

“But we are also strong believers in fairness and sensible commercial values for all share­holders.

“We can’t condone the pricing structure and terms proposed. We have spoken to a number of major shareholders and while they say they agree with us, not all may be prepared to take a public stand for fear of upsetting the apple cart. We have no such fears and will always act according to our moral beliefs.”

Thorney Opportunities and Mr Waislitz’s private Thorney Investment Group together have a combined 11 per cent holding in Money3 and have voted against the options issue.

Money3 has claimed the directors deserved to be rewarded for bringing an end to division between the former managing director and the board, focusing the company strategy on sustainable profitability and negotiating a new debt facility of $20 million.

Mr Malone agreed not to receive director’s fees for the past financial year.